Qualcomm (NASDAQ:QCOM) Shares Down 2.6% - What's Next?

Key Points

• Qualcomm shares fell 2.6% to $172.47 on Friday, with trading volume about 31% below its average.
• Latest quarterly results slightly beat expectations, with EPS of $2.17 and revenue of $10.44 billion; however, revenue declined 8.4% year over year.
• CEO Cristiano Amon reiterated data-center sales goals of $5 billion in fiscal 2027 and $15 billion in fiscal 2029, though execution and customer-concentration risks remain. Analysts’ consensus rating is Hold, with an average price target of $197.13.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) traded down 2.6% on Friday. The stock traded as low as $167.20 and last traded at $172.47. Approximately 10,397,270 shares traded hands during mid-day trading, a decline of 31% from the average session volume of 15,128,178 shares. The stock had previously closed at $177.14.

Recent Qualcomm Headlines

Here are a few of the latest headlines about QCOM:

• Positive Sentiment: CEO Cristiano Amon reaffirmed Qualcomm’s data-center ambitions—$5 billion in fiscal 2027 sales and $15 billion in fiscal 2029—and said the company is confident in the opportunity. Those targets could provide a substantial new growth engine if achieved. Article: Qualcomm CEO on $15B data-center goal
• Positive Sentiment: Zacks Research raised its rating on QCOM from “strong sell” to “hold,” indicating a less negative view, though not a bullish recommendation. Article: Zacks Research rating
• Negative Sentiment: Analyst commentary highlights falling earnings estimates, margin pressure, and significant investment needs. Qualcomm’s data-center growth plans also face customer-concentration and execution risks, making the targets uncertain. Article: Qualcomm's $5 Billion Data Center Ramp Puts Execution in Focus Now

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on QCOM shares. Piper Sandler reaffirmed a "neutral" rating on shares of Qualcomm in a report on Thursday, November 5th. Evercore set a $159.00 price target on shares of Qualcomm in a research note on Thursday, July 30th. Cantor Fitzgerald lowered their price objective on shares of Qualcomm from $200.00 to $165.00 and set a "neutral" rating on the stock in a research report on Monday, July 27th. Zacks Research raised shares of Qualcomm from a "strong sell" rating to a "hold" rating in a research report on Wednesday. Finally, Weiss Ratings upgraded shares of Qualcomm from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty-two have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $197.13.

Qualcomm Stock Performance

The stock's 50-day moving average is $178.65 and its 200 day moving average is $169.90. The stock has a market cap of $184.54 billion, a price-to-earnings ratio of 13.58, a P/E/G ratio of 2.07 and a beta of 1.70. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.86 and a quick ratio of 1.14.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.16 by $0.01. The company had revenue of $10.44 billion for the quarter, compared to analysts' expectations of $10.12 billion. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. The firm's quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.00 EPS. As a group, analysts predict that Qualcomm Incorporated will post 6.75 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be paid a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. Qualcomm's payout ratio is 28.98%.

Insider Activity

In other Qualcomm news, EVP Akash Palkhiwala sold 2,500 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $182.85, for a total value of $457,125.00. Following the completion of the transaction, the executive vice president owned 18,184 shares in the company, valued at approximately $3,324,944.40. This represents a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Grech sold 625 shares of the firm's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the sale, the chief accounting officer directly owned 208 shares of the company's stock, valued at approximately $33,872.80. This trade represents a 75.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 32,520 shares of company stock valued at $6,101,411 over the last three months. 0.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Qualcomm

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. ABS Investment Management LLC acquired a new stake in shares of Qualcomm during the 2nd quarter valued at approximately $34,000. ABS Direct Equity Fund LLC purchased a new position in Qualcomm during the 2nd quarter valued at about $34,000. Mizuho Securities Co. Ltd. purchased a new position in Qualcomm during the 3rd quarter valued at about $35,000. Team Financial Group LLC purchased a new position in Qualcomm during the 3rd quarter valued at about $38,000. Finally, Burk Holdings LLC raised its position in Qualcomm by 191.7% during the second quarter. Burk Holdings LLC now owns 210 shares of the wireless technology company's stock worth $39,000 after acquiring an additional 138 shares during the last quarter. Institutional investors and hedge funds own 74.35% of the company's stock.

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications. Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.

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